Shanghai Liangxin Electrical (SZ:002706)2024-02-06 05:47Group 1: Industry Overview - The low-voltage electrical industry had a market size of approximately 85.5 billion in 2022, affected by the downturn in downstream industries like real estate, resulting in negative growth for the entire industry [2][3]. - The real estate sector's recovery in 2023 has not been significant, and competition in the market is intensifying, with increasing demands for product differentiation and customization [3]. Group 2: Competitive Advantages - The company has strong customer reach through a B2B model, focusing on key clients in sectors such as new energy, industrial construction, and telecommunications, ensuring high customer retention [3]. - The company emphasizes technological development and R&D, maintaining an annual R&D investment of no less than 6% since its listing, which enhances its product competitiveness [3]. Group 3: Strategic Focus and Future Investments - The company plans to deepen its market layout around the "Two Smart and One New" strategy over the next 2-3 years, focusing on new energy sectors and smart distribution [4]. - The smart home business is experiencing rapid growth, with plans to expand product offerings to other application scenarios [4]. Group 4: Profitability and Cost Management - The company aims to balance revenue and profit, with a focus on improving gross margins through comprehensive cost reduction measures [5]. - The gross margin has been gradually recovering, supported by cost control initiatives and the anticipated increase in capacity from the Haiyan factory, which is 95% relocated as of 2023 [5].